The father of the LED is now looking to revolutionize the industry he helped create. Soraa, a Silicon Valley startup co-founded by Shuji Nakamura — who created the blue laser and the white LED — officially unveiled the technology behind its LED innovation on Tuesday. The company, which is backed by venture capitalist Vinod Khosla, has developed a new way to manufacturer an LED light that produces a light that is brighter, has a better quality, is more energy efficient, and saves more money than its competitors on the market.
The first light Soraa is launching is a lamp to replace a halogen bulb (called an MR16), which are commonly used in places like recessed ceiling lights and spot lights on products in stores and venues. These aren’t lamps for the everyday home owner, and Soraa is targeting commercial and industrial building owners first, before it moves to the residential market.
During an interview with Soraa CEO Eric Kim at Soraa’s factory, Kim explained to me that “light is not a commodity,” as he showed me the light from the Soraa lamp in comparison to a variety of LED competitors including giants like Philips that also make halogen replacement LEDs. Indeed in the various tests the bright white light displayed a far better quality, consistency, color and angle than the comparison light.
That type of quality would be pretty cool on its own. But Soraa’s LED light is also highly energy efficient. It uses about 75 percent less energy than incandescent and halogen bulbs, and lasts 25 times longer than halogen bulbs. For a company that’s buying lighting for a commercial building, a Soraa light can deliver a year pay back period in energy savings, said Kim.
How does it work?
Soraa’s secret sauce lies in the startup’s early bet on using the semiconductor gallium nitride for the substrate part of the light. LEDs are usually made by putting gallium nitride onto sapphire of silicon carbide substrates. But Soraa’s light places gallium nitride onto a gallium nitride substrate, enabling the core of the light itself to create better uniformity. Soraa says the combo is more cost effective and can produce more light per lamp than the traditional methods.
While the tech sounds like a perfect thing to license to the big players, Soraa is making the big bet that it can be a vertically-integrated LED manufacturer, making the substrate, chip, packaging and entire light solution. That’s always a slight risk, because that can be capital intensive, but on the other hand, the payoff and potential are a lot higher when you own the whole value chain.
Soraa is currently moving into volume commercial production at its factory in Fremont, Calif. Kim tells me at the company’s current fab, it will be able to turn into a 0 million revenue per year company.
Soraa, which was founded in 2008, is backed by Khosla Ventures, NEA and NGEN Partners and has raised over 0 million in funding.
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Nokia eked out a decent third quarter based on strong feature phone sales, helping the company beat analyst expectations. Nokia’s revenue fell 13 percent to 8.98 billion euros (US .3 billion) with handset shipments decreasing by 3 percent to 106.6 million units, (89.9 million feature phones and 16.8m smartphones) a more gentle decline than analysts had predicted. It managed a diluted earnings per share of 0.03 euros, beating out analysts expectations of a 0.01 euro loss.
The big test will be next year as it ramps up distribution of Windows Phones. But the pressure is on for Nokia to demonstrate that it made the right bet on Windows Phone and that it has some pretty stunning hardware to show for it. The handsets will need to be markedly better than anything its got in its stable including the N9, a very compelling device that launched with Nokia and Intel’s MeeGo OS. Positive reviews of the N9 have prompted many to wonder why Nokia essentially discarded MeeGo in favor of Windows Phone 7, something Elop will have to answer by showing just how much Nokia can do with Microsoft’s platform.